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At closing on a new home loan, you may see paperwork concerning title insurance for the lender. This insurance protects the lender against the validity of the mortgage and secures their investment. You may think that this protects you, as the mortgage holder, but it does not. There are several reasons that a newly built home needs title insurance – chiefly, to protect you, the homeowner.

You might not be the first owner

Even though your home is new construction, and you purchased the lot for the house, you may not be the first owner of the property. In fact, your plot may be a parcel of larger acreage, one that has changed hands several times before being developed. Title insurance guards you, the homeowner, against liens against the land itself. The title search conducted as part of your insurance appraisal will determine the validity of your purchase, as well as the legal ability of the seller to sell to you. The survey of your property will legally establish the boundaries of your ownership.

The builder may owe money on your house

http://heightstitle.com/wp-content/uploads/2018/01/home-needs-title-insurance.jpgIf a builder hasn’t paid their suppliers or vendors, these companies may place a lien against the physical structures. This lien, while against the builder of your house, is still placed on your home. While you may have purchased the home from the builder in good faith, a lien on your property will affect your ability to sell your home in the future.

Mechanic’s liens against your property come from companies such as roofers, electricians, and plumbers. These actually attach to the real estate itself, rather than the builder’s company. When you sell your house in the future, or your heirs do, if these subcontractors haven’t been paid by the builder, it’s your own house that has the unresolved debt attached.

Owner ‘s Title Insurance protects your home forever

While the lender may purchase a Lender’s Policy, that only protects their loan. The coverage for the policy drops as the amount of the loan decreases. A home owner’s title insurance policy, however, is in place for the entire duration of your home ownership, and the coverage won’t decrease unless you personally make changes to the terms of the policy. The bank’s title insurance protects their loan only.

Your personal title insurance will identify any risks before a transaction on your property is completed, and if a claim is discovered, the insurance policy should cover it, along with any court costs and fees.

Options for enhanced insurance

At the time of closing, you’ll pay a one-time premium for your title insurance. You may opt for standard coverage, which protects your house against mechanics liens and the like, as well as your investment. You may also have an option (this varies by state) to purchase enhanced coverage. This protects against undiscovered encumbrances, such as zoning issues, fencing disputes, and even mineral rights. It even protects you, the homeowner, from building permit violations created by your home builder (please note – this doesn’t cover any DIY projects that you complete on the home).

Purchasing title insurance on a newly built home is an added level of protection for one of your most valuable investments. Call Heights Title Services and speak with our team for recommendations. Investing in protection now may save you a lot of headaches in the future.

Buying a home or a piece of property may seem like a fairly straight forward thing. Someone owns the land, you buy it from them, then you own the land. Unfortunately, there are many title issues that can keep you from using the land the way that you see fit. Unknown Easements and Undiscovered Encumbrances are just two of these issues. Let’s take a closer look at what each of them are.

Some of these issues may have come about during the previous owners ownership, and while they were grandfathered in, and the issue wouldn’t have effected them, once the title changes hands, the issue will effect you as the new owner.

Unkown Easements

http://heightstitle.com/wp-content/uploads/2018/01/undiscovered-encumbrances.jpgAn easement is a right to use and/or enter onto the real property of another without possessing it. In Southwest Florida this is typical with many cities retaining rights for storm drains and sidewalks along the street. When I was growing up in Cape Coral we use to say that the city owned the first 15 feet onto your property. Well they don’t own it, there is just an easement.

Some lesser known easements that you could run into could be a historic preservation easement that can restrict alterations to a historic building, or a conservation easement that can limit development on a piece of property to help preserve the environment.

Utility easements can also be common in Southwest Florida where one piece of property does not have direct access to a utility (like sewage), so their pipes are run under a neighboring property. This type of easement can easily be overlooked as in many cases the original work was done many decades ago, and the easement may have never effected the current owners. However, if the new owners are planning a remodel or expansion of the home, this type of easement could be very costly.

Undiscovered Encumbrances

An easement is actually a type of encumbrance. So, unknown easements are actually undiscovered encumbrances.

Liens are also encumbrances, however liens are usually taken care of from the proceeds of the sale of the home, and not passed on to the home buyer. A lien may come from a bank, or a contractor who wasn’t paid for work they did on the property. Tax liens are also common.

Deed restrictions are another form of undiscovered encumbrance that can be found often in Southwest Florida. Many gated communities have deed restrictions that can restrict many things to protect property values. These things can pertain to where you are allowed to park cars on the property or where you can place a satellite dish, down to landscaping details.

Another type of encumbrance that is usually discovered when the property is surveyed is encroachments. These encroachments tend to be when a fence goes over a property line, and can even be when a tree on one property has branches that hang over another property. In some cases the adjacent owner can ask for an encroachment to be removed, or request compensation for the encroachment. This can hold back a sale, or reduce the value of a property.

Protecting Yourself From Undiscovered Encumbrances

A title services company, like Heights Title, will research a property and title and be able to find any undiscovered encumbrances or unknown easements before the sale of the home is final. These are just a few title problems that can up when a home is bought and sold. Make sure you have someone do the research before you transfer property.

Many people choose to retire to Southwest Florida for its beautiful beaches and senior-friendly amenities. Warm weather and less crowded shores than the state’s East Coast make Ft. Myers, Naples and Cape Coral attractive prospects for retirees looking to buy a dream home for their golden years. When buying a retirement home in Southwest Florida, one of the many things to consider is what type of title insurance to purchase to avoid any questions of ownership that could overshadow a happy retirement.

Why You Need Title Services

Title insurance protects the buyer and lender from any doubts as to the seller’s free and clear ownership of the property. Once title is cleared, there is no doubt that ownership can be legally transferred to the buyer.

Here are some of the issues that can challenge your ownership if a title services search isn’t made.

Unpaid past mortgages and liens

Easements that impact property boundaries or transfer of title

Pending litigation against the owner

Most of the premium covers the cost of the search, but a portion of it go to protect you from losing your money if something comes up that wasn’t uncovered in the title search.

Types of Policies

Before acquiring title services for your retirement home in Southwest Florida, it’s important to understand what’s covered in each type of policy.

Lenders Title Insurance. Lenders title insurance covers situations where you lose your home to an unknown lien. This policy only pays off the remainder of your mortgage.

Owners Title Insurance. This policy covers the purchase price of the property. If you wish to cover inflation, you’ll need an enhanced policy or inflation rider, which covers any liens filed after the closing date.

How Does It Work?

There’s a one-time fee, unlike other insurance policies. It’s rare that the title company has to pay out a claim, since they spend a lot of time researching whether any skeletons will fall out of the closet after you purchase your home. It’s in the title company’s best interest to protect you and themselves from liens and other ownership disputes against any former owners.

Also unlike other insurance policies, your title services include an active role in protecting your interests. During the escrow phase of your purchase, the title insurance company searches through public records to ensure that no one else has a viable claim to your property. The title company scours through wills, deeds and trusts to trace the history of the home back as far as possible.

Back to More Important Things

Protecting yourself with title insurance makes sense. It’s worthwhile to find out as much as you can about the history of your retirement home is Southwest Florida. Choose a title company with a proven track record in the area and with the appropriate experience in title searches and challenges. That way, you can get back to more important things, like margaritas on the beach and salsa lessons.

Few people understand the hidden costs that come with owning a home as well as ensuring that they secure their home in case of any eventualities in the future. Many home buyers learn the hard way when it comes to matters concerning real estate. Title insurance ensures that you remain free of any anxieties related to home ownership. Title insurance purpose to protect you when purchasing and selling your home. Through our title research, we will help you review all the documents associated with home ownership. We will analyze the transactions, identify, and uncover the hidden financial errors. Ensuring you have a title policy is, therefore, our primary concern, as it ensures that you are relieved of the financial nightmares. Among the nightmares title insurance can protect you from include:

1. Invalid claims of land ownership.

Title insurance purpose to protect you from unreliable deeds relating to property titles transfer witnessed among homeowners assumed to be mentally challenged or suffering from other terminal conditions. It ensures that you do not fall a victim of fraud incidents. The title insurance company will fight for your legal rights as a home buyer while strictly adhering to the terms of the homeownership policy. However, in cases where the claims against you prove valid, title insurance will reimburse you the losses suffered.

2. Judgments and liens

Title insurance protects you from claims, judgments, as well as other forms of accruing debts that may be imposed on you after closing the deal. Title services will provide you with two types of policies that will cover you from both the lender and yourself. Also, the title insurance aims to reimburse you for any losses attributed to title-related incidents that manifested before the purchase was made.

3. Hidden mortgages

Title insurance services will pay off any of your outstanding mortgages. Similar to liens, title search ensures that the closing of the sale is done most efficiently as a home buyer. It will give you a clear title at the closing of the deal.

4. Errors Witnessed in Public Records

A clerical error negatively impacts any home buying process which may, in turn, result in enormous financial losses. Title insurance services help you determine whether the actual cost of the property bought or that is yet to be purchased is less than what is recorded. Our title search will ensure that possible errors involved are identified. These will ensure that the mortgage company approves your home loan swiftly and efficiently. Title insurance provides that a home may sell at a lesser price than what was stated thus reducing the buying price of a home. Title insurance is the only sure way to which you are assured of investment security when dealing with real estate matters.

Conclusion

Title insurance gives you the most reliable insurance coverage. Getting a title policy helps you get rid of your nightmares regarding homeownership. Our impressive records of success are attributed to our expertise that always purposes to put your interest at heart, giving you the right to claim what rightfully belongs to you. Give us a call today and experience the unique service offered by title insurance. We offer you the best strategy that safeguards your desires to own a home. Let us help you secure that dream home!!

Selling a home without assistance is a complicated and time-consuming process that many people take on to increase profits. It can be tempting, when trying to be frugal, to bypass many of the professionals that are available to help in the sale of your home. Despite the allure of money saved, title services are something you definitely don’t want to skip. The services provided by title companies not only take much of the stress and complication out of the transaction, having professionals at your side could also save your sale.

Title Insurance

Title insurance gives you, and the buyer, a guarantee that there are no outstanding claims against your property before the sale. The title company searches the title history of the property to find any claims that must be handled before the title can be transferred. Once these obligations are addressed, the buyer can receive the title freely and the seller can walk away knowing all debts on the property have been paid.

Escrow Services

Escrow services are available to protect the money and property interests between the buyer and seller. An escrow account is set up to hold any money that is related to the sale. The title company is responsible for ensuring that the title, and money, is disbursed to the correct parties at the appropriate time. This guarantees the title won’t be released to the buyers until all money has been paid, protecting the sellers’ interests.

Closing Services

The close is probably the most exciting part of the process. This is usually the moment when all parties sign the required documents, the sale is finalized, and the keys and money exchange hands. Because this meeting comes at the end of the transaction, it is extremely important that everything run smoothly. All parties are invested at this point of the sale and a significant amount of work has gone into making the transaction happen. The title company will host the close by providing the meeting place for the buyer and seller to work out any remaining details. The title company’s additional closing services include handling the paperwork, distributing money, and executing and recording the deed.

Without the use of the title company, sellers are responsible for ensuring there are no claims on their property, must navigate the financial transaction alone, and are responsible for handling their own close with the buyer. Buyers may be less trusting without a title company involved and there is always the potential that something was missed during the title search, a mistake is made with the purchase funds, or that a mistake is made during the close. Any one of these things could cause you to lose the sale and put you back at square one. If you’re considering selling your home yourself, or already have your home on the market, and don’t yet have the a title company to assist you, it’s not too late. Find a title company today so you can focus on what’s really important: finding the right buyer and deciding what to do with the next chapter of your life.